Q1) What is the Contribution for Provident Fund both by the Employer & Employee?
Ans : The Employee contributes 12% of his /her Basic Salary & the same amount is contributed by the Employer.
Q2) Is it Compulsory for the all the employees to contribute to the Provident Fund?
Ans : Employees drawing basic salary upto Rs 6500/- (Rs. 15000/- from 01.09.2014) have to compulsory contribute to the Provident fund and employees drawing above Rs 6501/- ( (Rs. 15001/- from 01.09.2014)) have an option to become member of the Provident Fund .
Q3) Is it beneficial for employees who draw salary above Rs 15001/- to become member of Provident Fund?
Ans Yes because provident fund contribution by the employer & employee is not a taxable income for Income Tax purpose.
Q4) What if an employee while joining establishment has a basic salary of Rs 11200 and after some period of time his basic salary increases above Rs. 15001/-, does he have an option to terminate his member ship form the Provident fund act?
Ans : Employee who while joining the organisation has a basic salary above Rs 15001/- have an option to either become or avoid becoming member of Provident fund but employees whose basic salary while joining the organisation is less then Rs 15001/- but after some period of time their basic increases above Rs 15001/- have to compulsorily continue to be member of provident Fund.
Q5) What is the contribution percentage to the Provident fund and Pension Scheme?
Ans : Employers contribution of 12% of basic salary is totally deposited in provident fund account Whereas out of Employees contribution of 12% , 3.67% is contributed to Provident fund and 8.33% is deposited in Pension scheme.
Q6) Which form has to be filled while becoming member of provident fund?
Ans : Nomination Form No 2 has to be filled to become a member of the Provident fund, form is available with HR department.
Q7 ) Which form has to be filled while transferring provident fund deposit ?
Ans : You just have to fill form no 13 to transfer your P.F amount.
Q8 ) What is the provision of the scheme in the matter of nomination by a member ?
Ans : Each member has to make a nomination to receive the amount standing to his credit in the fund in the event of his death. If he has a family, he has to nominate one or more person belonging to his family and none other. If he has no family he can nominate any person or persons of his choice but if he subsequently acquires family, such nomination becomes invalid and he will have to make a fresh nomination of one or more persons belonging to his family. You cannot make your brother your nominee as per the Acts.
Q9 ) When is an employee eligible to enjoy pension scheme ?
Ans : For an employee to become eligible for Pension fund, he has to complete membership of the Fund for 10 Years.
Q10 ) What does it mean by continuous service of ten years ?
Ans : When we say continuous service of 10 years in Employee Pension Fund, we mean to say that during services, for e.g., an employee who has worked with X company for say 3 years, then he resigned from that organisation and joined Y company, wherein he worked for 2 years, then resigned from there to join establishment for 5 years but during these 10 years of service he has not withdrawn but transferred his Employee pension fund, then we say continuous service of ten years.
Q11 ) When can an employee avail the benefit of Employee pension fund scheme which he has contributed during his ten years of continues service /
Ans : An employee can avail the benefit after completion of 58 years of service.
Q12 ) What happens to the provident fund & Employee Pension fund if an employee who wants to resign from the service before completion of ten years of continues service?
Ans : Employee can withdraw the PF accumulations by filling Forms 19 & 10 C which is available with the HR department.
Q13 ) What is this 19 & 10C form ?
Ans : Form No 19 is for Provident fund withdrawal & Form No. 10 C is for Pension scheme withdrawal.
Q14 ) Do we get any interest on the amount which is deposited in the Provident Fund account?
Ans : Compound interest as declared by the Govt. is given for every year of service.
Q15 ) What is the accounting year for Provident fund account?
Ans : Accounting year is from March to February.
Q16 ) What are the benefits provided under Employee Provident Fund Scheme?
Ans : Two kinds of benefits are provided under the scheme-
a) Withdrawal benefit
b) Benefit of non -Refundable advances
Q18 ) What is the purpose of the Employee’s Pension Scheme ?
Ans : The purpose of the scheme is to provide for
1) Superannuation pension.
2) Retiring Pension.
3) Permanent Total disablement Pension
Superannuation Pension: Member who has rendered eligible service of 20 years and retires on attaining the age of 58 years.
Retirement Pension: member who has rendered eligible service of 20 years and retires or otherwise ceases to be in employment before attaining the age of 58 years.
Short service Pension: Member has to render eligible service of 10 years and more but less than 20 years.
Q19 ) How much time does it take to receive P.F & pension money if an employee resigns from the Service?
Ans : Normally the procedure for receiving P.F & Pension money is , the employee has to fill 19 & 10 c Form and submit the same to PF Desk , which is then submitted to the P.F office after two months, this two months is nothing but a waiting period as the rules are that an employee should not be in employment for two months after resigning if he has to withdraw his P.F amount. After completion of two months the form is submitted to the regional provident fund Commissioner office after which the employee receives his amount along with interest within a period of 90 days.
Q20 ) Do we receive money through postal order ?
Ans Previously there was a procedure wherein member use to get P.F through Postal order but now While submitting the P.F form withdrawal form you have to mention your saving Bank account No. & the complete address of the Bank where you hold the account.
Q21 ) How would I know the amount of accumulations in my PF account ?
Ans : PF office sends an annual statement through the employer which gives details about the PF accumulations. The statement contains details like, Opening balance, amount contributed during the year, withdrawal during the year, interest earned and the closing balance in the PF account. This statement is sent by the PF department on completion of the financial year.
Q22 ) Which establishments are covered by the Act ?
Ans : Any establishment which employs 20 or more employees. Except apprentice and casual laborers, every Employee including contract labour who is in receipt of basic salary up to Rs. 6500 p.m. (Rs. 15000/- from 01.09.2014) is covered by the Act.
Q23 ) In case after registering the establishment at any point in time, the number of employees working in it becomes less than 20 then will the Act apply ?
Ans : Any establishment which has been covered under the Act once shall continue to be governed by the Act even if the number of persons employed therein at any time falls below 20.
Q24 ) Is the Act applicable to a factory which is closed down but is employing a few employees to look after the assets of the establishment ?
Ans : No, Where the establishment is closed down and only four security men are employed for keeping a watch over the assets and properties of the establishments, the Act would not be applicable.
Q25 ) Is a trainee an employee under the Act ?
Ans : Yes, a trainee would be considered as an employee as per the Act but in case the trainee is an apprentice under the Apprentice’s Act then he/ she will not be considered as an employee under this Act.
Q26) Is it possible to appeal the orders of the Central Government or the Central Provident Fund Commissioner?
Ans : Yes, there is a body called as Provident Fund Appellate Tribunal where an employer can appeal.
Q27 ) Who is the authority to decide regarding the disputes if any ?
Ans : In case there is a dispute regarding the applicability of the Act or the quantum of money to be deducted etc. the authority to decide are the
i) Central Provident Fund Commissioner,
ii) any Additional Provident Fund Commissioner,
iii) any Additional Central Provident Fund Commissioner
iv) any Deputy Provident Fund Commissioner
v) any Regional Provident Fund Commissioner or
vi) any Assistant Provident Fund Commissioner
Q28 ) What in case there are workers involved as Contract labour ?
Ans : It is the responsibility of the Contractor to deduct the PF and submit a statement to the Principal Employer in the prescribed format by 7th of every month. The Company becomes the Principal Employer would be responsible for the PF deduction of the workers employed on contract basis.
Q29 ) Are the persons employed by or through a contractor covered under the Scheme ?
Ans : Persons employed by or through a contractor are included in the definition of “ employee ” under the Employee’s Provident Finds Act, 1952, and as such, they are covered under the Scheme.
Q30 ) In case the Contractor fails to deduct and submit the PF amount from the contract workers then what is to be done ?
Ans : The Company being the Principal employer is responsible for the PF to be deducted from the Contract workers as well. In case the Contractors fails to deduct and submit the PF dues then the Company has to pay the amount and can later on recover the amount from the Contractor.
Q31 ) Could the employer be punished in case the remittance of contribution by him is delayed in a Bank or post office ?
Ans : Employer cannot be punished or penalized in case there is a delay in the remittance of the contribution on account of delay in Bank or post office.
Q32 ) What happens in case there is a salary revision and a raise in the basic salary of the employee and arrears need to be paid, Do we need to deduct PF from the arrears as well ?
Ans : Arrears are considered to be emoluments earned by the employee and PF is to be deducted from such arrears.
Q33 ) Is it possible for an employee to contribute at a higher rate of interest than 12 % ?
Ans : Yes, if an employee desires to contribute an amount at a higher rate of interest than 12 % of basic salary then they can do so but it does not become obligatory for the employer to pay anything above than 12 %. This is called voluntary contribution and a Joint Declaration Form needs to be filled up where the employer and the employee both have to give a declaration as to the rate at which PF would be deducted.
Q34 ) What is the interest on the PF accumulations ?
Ans : Compound interest as declared by Central Govt. is paid on the amount standing to the credit of an employee as on 1st April every year.
(Compiled & Edited by CA Sandeep Kanoi with Inputs from EPFO website)
(Article was first Published on 30.11.2011 and republished with amendments on 15.01.2015)
Hello Sir,
I worked with an IT company for 4.6 years and joined in another IT organization. I did not transfer my EPF to current employer from my previous employer and my PF account is about to complete 7 years. I would like to withdraw my PF, is it taxable? How much percentage? How can I avoid tax being deducted from my PF account?
I have applied for PF 3 months ago. I didn’t get any response till now
i worked from 2008 to 2012. please assist me to withdraw my PF.
Hi,
My current employer required by UAN for linking pension scheme contribution. However, upon enquiring, my previous organisation (Development Credit Bank Ltd) says that they do not have such pension schemes and hence they will not be providing any details like UAN and such. Pls advise.
Contact : 8552000324
if am receiving a basic salary is below 6500p.m at the time of joining and now am receiving 18000p.m from 1st dec 2014. whether pf contribution is deducted from 6500 or 18000?
Sir,
As iam planning to migrate to abroad, I would like to opt for PF withdrawal. I am having 12 years of membership with PF account. In that case, which forms I need to submit Form 10C or Form 10D , along with Form 19.
Regards
john
I have withdraw my pf & pension amount after resigning from job. Earlier I knew my pf balance online is about Rs.8000/- more than I have got from PF after withdrawl. I could not understand the matter. Please inform.
— Pradip Chatterjee, PF A/C No WB/DGP/42761/140
Dear Sir
Whether interest is leviable even in case of payment of pf dues within the period specified in the demand notice. The demand notice was for payment of differential pf liability pertaining to 2011-12
DEAR SIR,
PREVIOUS WORKING IN PARTNERSHIP FIRM 17 YEARS & I RESIGNED ON 20002 .
PREVIOUS COMPANY PENSION 800/-PM STARTING FROM JAN-2011.( AFTER MY AGE 50 YEARS )
RE-JOINING NEW PVT LTD COMPANY ON FEB-2007.THIS COMPANY PROVIDING PF FACILITY. THIS COMPANY DEDUCTED PF FROM 2007. SUM SHARE TRANSFER TO PENSION SCHEME.
MY QUERY IS CURRENTLY I HAVE AVAIL ONE PENSION 800/P.M . WHAT ABOUT 2ND COMPANY PF CONTRIBUTION .CAN I APPLICABLE AVAIL 2ND PENSION OR WITHDRAW THE ALL FUND AMOUNT.2ND SERVICE GOES TO 10 YEAR COMPLETE IN AUG-2016.PLEASE ADVICE ME WHAT CAN I DO.WITHDRAW THIS FUND OR CONTINUE TO PENSION SCHEME ?
TAJKING YOU
RAJENDRA CHANMAL
I have completed 4 yrs and 10months of service in my current org. please let me know if i quit now will my PF still be taxed.
And if so what is the TAX calcualtion if you help.
I have submitted my pf withdrawal form on 22-03-2015 to my previous employer, and till now no news. when i asked to my previous employer they saying that its already been submitted to PF office.i have a question that if they submitted to PF office will i get message on mobile? and how many days will take to get my money, please answer, thanks.
Team,
I have received claim id on 5th MAY for my PF withdraw request. In how many days can I expect the money be deposited.
hello Sir,
My query is that if a person is working in company X in morning hours and company Y in afternoon can he maintain two different pf account from both the companies
Dear Sir,
I resigned from my company on 31st March 2015, I want to widraw my PF. when I go to company for filling the form compnay refused to fill as they said.the PF of month march not submited yet in PF office, they said that when PF of March submitted we signed your form. as the financial position of company is very critical, and I have urgent need of money, kindly tell me can i widraw my PF in this situation.
sir
iam sub contraction in contractor company but company deduct my pf and tds also it is possible or not…………….plz hepl me….
dear sir,
my father worked in a company and has taken voluentery retirement and he has expired, we are not having his pf account number how to get it
If i withdraw part of PF amount Am I eligible for PENSION after 10 years ??? If YES how much MAXIMUM AMOUNT I can withdraw from my PF account
a person who is less than 10year of continuous service then how he can get withdraw pension amt.under EPFO scheme.
I need to know – Any establishment which employs less than 20 nemployees(say 15 employees) and some employees (say 6 employees) getting basic salary of Rs. 6000 per month than that company/employees also covered by the Act.
I have been working in a private school for past 10 years. they have given me experience certificate without any reason. how can i save my service
Pls confirm whether Employer’s contribution can be inculded in employee’s CTC.
If yes,then then it means that both the employer’s & Employees’s contribution is being made thorugh employee salary/CTC only,pls clarify then what is the benefit of the employee here.
Hi Basu, Help me to understand options available to me on Provident fund. I am NRI with no income in India from 2012. I worked in India from 2009 to 2012 had provident and voluntary provident fund contrbution to company’s private PF trust. Once I left the job in 2012, I had not withdrawn my PF. As I moved out of India, I had no option to tranfer in PF. Now, its about 3 years (2012 to 2015), PF account will become dormant with no interest paid. I have no immediate need of money. Help me to understand on tax liability on PF withdrawal. I understand 5 year of continuous service leads to Tax free withdrawal of PF. Will my 3 year of service (2009-12) and 3 years of waiting (2012-15) be counted in continuous service? Or Do I have to wait for another two years to be elligible for tax free withdrawal?
A Middles school employe more than 20 teachers 2 years ago. Should they register for PF now or it should be retrospective registration. What would be the impact.?
I retired from pvt company in Sep’2013. I have scheme certificate from our previous employer. I need to apply for monthly pension from PF. Can I get pension from the date of my retirement. Please guide me and procedures for applying PF pension.
Hi, I have PF account number provided by my company but it is not getting traced.UAN number is also not available.How to trace UAN if PF account number is not valid. Please reply at the earliest,by mail.
Hello,
How to trace validity of my PF account? I have PF account number provided by my company but it is not getting traced. I am worried about my deductions for one year.
Reply at the earliest, possibly by mail.
Dear Sir,
I work in Stemade biotech Pvt. ltd. When I joined the firm no ones PF was getting deducted.
After strict laws, in 2015 the employer started deducting 24% as PF (12% from basic and 12% from CTC)from our salary.
It seems company is not contributing anything.
When asked clarification, we have been told “This is the way PF gets deducted in all companies.”
Is that true?
Kindly reply.
Dear Sir,
From 1985 to 2001 I am working a Bombay based Ltd company, region at chennai and branch at Cochin. The Company closed on 2001 and the Provident Fund withdrawn and received from Coimbatore Provident Office and also they issued a Scheme Certificate also and I kept that Scheme Certificate in my safe custody. From 2001 to 2003 I am not working anywhere.
From June 2003 onwards to May 2011(8 yrs) I am working in a Ltd Company at Cochin and the Company deducted PF from my salary. The company Provident fund is under a Trust.At the time of relieving, the company release my contribution, the Employer contribution they are not giving to me stating that it takes time to release.
Is it Iam eligible for the Employer contribution for 8 yrs service.
At present my age is 54 yrs and I am not joining any where.
Also kindly let me know What I can do with this Scheme Certificate,
tks,rgds,
Gopa Kumar
how can A COMPAny give job in lko but open pf ac from hydrabaad
Dear sir,
With due respect i Mr. imlikokba jamir beg to state that i have resign from the BANK on December 2014 after working more than two years and, ill now i didn’t got my Provident Fund or received any mail or forms for withdrawal of my PF and my relieving letter.Therefore i humbly request you to kindly consider my case and do the needful at the earliest for which act of concern i would remain ever grateful to you.
Details of my joining date and my confirmation of my service can be provided if needed
Thanks & Regards,
Imlikokba jamir
EMP ID : 256350 (JUNIOR OFFICER)
Mokokchung Branch
SOL ID 2137
Sir,
Kindly advice the Answers regarding this.
rgds
Gopa Kumar
Sir,
My firm is proprietary concern and doing contract business in Gujarat. our labour strength is around 11 people.
it’s possible to get Pf number for my organization ? .
pls clarify.
Sir,
From November 2011 onwards, I am working in a Logistics Company in Cochin, based on the Head Office is Mumbai and Regional Office in Cochin under the Regional Manager(Southern)
The Company has deducted PF from the monthly Salary as per Pay Slip with me. From 2014 November the company all over India closed without a Notice. After closing the company, checking with Other staffs understand that Company is not remitted the PF to Mumbai PF Office or Cochin PF Office.
The Salary slip is issued in the name of Cochin Branch Office. Kindly advice me what we can do for this.
rgds,
Gopa Kumar Cochin
I m an employee of new ltd. co., co incorporated in dec 2014 and pf registration has done in feb 2015. in march, 2015 i switched off my service. i worked for only 2 months . They have deducted my PF as per company policy. They have not given PF no. to anyone. in full and final statement they have deducted my pf but how can i get pf amount, if i donot have pf no.
or i can write comment on full and final which will take in consideration after pf amt paid to pf dept. (they have not paid pf amt to dept also) only deducted from my salary.
kindly reply on urgent basis.
Whether Pension scheme no. is different from Provident fund no.?
I work for a start-up, roughly 2 years old, and we’re not registered for PF. This is my first job and I’ve been working for 7 months now.
Does not being a member of EPF affect my credibility to avail services like getting a credit card or loan from banks?
I contributed to EPF when worked in two companies for more than 5 years together. I did some consulting for one year and did not contribute and then found a new job in a company of 3 employees and no EPF was added.
Can I withdraw the money and put it some where else because it is not earning interest and became inactive accounts. What form should I fill?
Hi,
We are builders and developers. We are availing works like civil, tiles laying, electrical, plumbing etc., through unregistered contractors.
Some time the job will be only for 30 days. In that case do we need to register his workers under EPFO schemes and deduct PF???????/
Do we have a choice like ESIC has called ommitted wages. where in we can pay 6.5% on lumpsum amount of wages paid to such workers?
– See more at: https://taxguru.in/finance/frequently-asked-questions-related-to-employees-provident-fund.html#comment-1521678
my pf and pension form approved for payment on 31-01-15 but payment not recd
ye and my claim status is.
STATUS for Member ID: WBCAL00187080000000427
Claim ID : WBCAL150100008735
Status : Claim Form 19 for PF Settlement AGAINST Member Account No (WBCAL00187080000000427) has been approved. Payment is under process.
my pf and pension form approved for payment on 31-01-15 but payment not recd
ye and my claim status is.
STATUS for Member ID: WBCAL00187080000000427
Claim ID : WBCAL150100008735
Status : Claim Form 19 for PF Settlement AGAINST Member Account No (WBCAL00187080000000427) has been approved. Payment is under process.
Claim ID : WBCAL150100008739
Status : Claim Form 10C for Withdrawal Benefit AGAINST Member Account No (WBCAL00187080000000427) has been approved. Payment is under process.
Dear Sir,
I had made and query on 07/02/2015. Till now no response. How do we get reply to queries
Dear Sir,
I had made and query on 05/02/2015. Till now no response. How do we get reply to queries?????
I have filled form 19 & 10C to withdraw PF after 2 month of leaving the earler company & during this 2 months I am working in other company but I have declare I am not employee anywhere, has it create any problem in PF withdraw? I am contributing PF in different PF account no. in current company. Earlier employer has already delay by 4 months to complete PF form process & now if any mistake in form happen then it will create same process to fill form, sign by employer in means again 4 to 6 month. Please suggest I can submit form with wrong declatarion or not.
Sir,
I worked in M/s FERNAS construction India Pvt. Ltd, GURGAON office from July 2011 to Dec 2014. They have not been submitting provident fund since Nov 2013 inspite of the same was deducted from our salary. Please guide me to take further action against company.
Hi Sir,
I was salary employed in IT company and worked for 3.5 yrs resigned and joined in another IT organization. I didn’t transferred my EPF to current organization still with old company and about to complete 5yrs. I would like to go for withdrwal my EPF, is it taxable? How much percentage? How I can get avoid taxable?
Thanks,
Jaffar
i am working in private organisation since 30 yrs. last 15 months employer has deducted my contribution but they have not remitted long with employer share now i want get both share what’s is the procedure?
i was informed that i can get only employee share upto payment made by the employer. what’s the rule/act.to get both amount at time.
Hi,
We are builders and developers. We are availing works like civil, tiles laying, electrical, plumbing etc., through unregistered contractors.
Some time the job will be only for 30 days. In that case do we need to register his workers under EPFO schemes and deduct PF???????/
Do we have a choice like ESIC has called ommitted wages. where in we can pay 6.5% on lumpsum amount of wages paid to such workers?
I have received excess amount as my PF money from the PF office. After 2 years they want me to refund it back. Kindly let me know whether i need to refund it or Leave it. They are calling me daily and telling me that they can file a case on me me. Kindly reply to my mail id
Dear sir
I filled Form 2012..got rejected because have not attached birthdate proof certificate now I again submitted Form but now the office was closed where i was worked.now my PF No not reflecting in the PF portal ……I worked for 3 yrs n resigned 5 yrs back I think as per my calculation the amount would be 50k . Please help how to get my PF
Respected Sir,
I have fill the form of PF return in june 2013 process done & form gets rejected. Noe in june 2014 again fill the form. I got the answer from my organizasation of rejection first form “My organization miss to pay PF of one month” is this the proper reason of PF rejection.
Now they are paid this month’s pf but not yet reflected on online portal. now they are told me that once this amount gets reflected pf will be withdrawn.
In above case what can i do please suggest.
Thanks & Regards,
Chetan
Hi sir, my pf no.is HR/GGN/28821/15314. I have applied for the p.f in 30TH DECEMBER and still haven’t recieved anything.Can you please help me in checking the status and the total amount I am eligible to recieve.Your earliest would be appreciated. thanks.. PANKAJ BARI